Hidden Hazards: How Pandemic-Era DIY Renovations Are Snagging Home Sales

For home inspector Lisa Alajajian Giroux, the signs are becoming frustratingly familiar. Peering into the attic of a Massachusetts home, she immediately spotted the issue: a lavish, half-million-dollar addition, a key selling feature, was marred by improperly installed spray foam insulation. The result? Condensation, water damage, and mold—a clear violation of building codes. As president of the American Society of Home Inspectors, Giroux finds herself documenting such unpermitted work with increasing frequency, a lingering consequence of the pandemic renovation boom.

"I encounter suspected unpermitted work four out of five days a week," Giroux told Straight Arrow News. She estimates that for 20% to 50% of homes she inspects, she must advise potential buyers to dig into the property's permit history. This trend, echoed by contractors nationwide, points to a market flooded with homes where owners, amid the chaos of lockdowns, bypassed legal requirements for permits on renovations.

The fallout is significant. Buyers unwittingly inherit the liability for this shoddy work. "When you buy a house, you take on the future liability," said Constantine Anest, owner of Denver's Ethos Roofing & Restoration. He recently encountered a deck literally pulling away from a house. Such disregard for codes often signals broader neglect, he warns: "If they're not being truthful up front, you don't want to do that deal."

With no single party in the transaction fully responsible for vetting renovations, the burden of playing "permit detective" falls squarely on buyers. While some states mandate disclosure of unpermitted work, sellers rarely must provide details. Real estate agents typically adhere strictly to the letter of the law, and the National Association of Realtors, when asked, directed attention to its ethics code requiring compliance with state statutes.

In response to growing concerns, Realtor.com last July added a field to its listings allowing a link to a property's permit history. However, adoption is inconsistent across regional databases, and the feature's usage isn't tracked, leaving buyers largely to their own devices.

Experts advise a defensive strategy: allocate extra time and budget for due diligence. Giroux recommends hiring an inspector who will specifically scrutinize renovations, especially structural, plumbing, and electrical work. Buyers should then use municipal online portals to trace permit records for any major project, checking for approvals and final sign-offs. "Accompany the inspector, using the permit history as a guide to potential problems," she urged.

This permit chaos may be contributing to a high rate of failed sales. In December 2025, Redfin reported 16.3% of purchase agreements were canceled. Mitch Coluzzi, founder of home sale-prep firm SoldFast, notes that a quickly collapsed deal often points to inspection issues, and buyers can request the prior report to identify red flags.

If unpermitted work is found, negotiation is key. Anest advises bringing in specialized contractors to diagnose issues and estimate code-compliant repair costs. Rather than having the seller handle cheap fixes, he suggests negotiating a credit: "That way, you select the contractor and oversee the work."

The risks extend beyond repairs. Lenders and insurers may refuse to finance or cover a home with unpermitted additions. "I've had buyers tell me, ‘I can't get insurance or financing,'" said Giroux. "Our goal is to give them the information for an informed decision."

Ultimately, in a market still rebalancing from the pandemic's frenzy, caveat emptor—let the buyer beware—has never been more relevant.

What Readers Are Saying

Michael T., Retired Contractor, Arizona: "This is a predictable mess. Skipping permits isn't just about cutting corners; it's a safety issue. Cities need to offer amnesty periods to get this work documented and inspected before someone gets hurt."

Priya Chen, First-Time Homebuyer, Seattle: "It's terrifying. We're already stretching our budget, and now we have to be building code experts? The system feels rigged against ordinary people just trying to find a home."

David R. ("FixItDave"), DIY Enthusiast, Online Forum Moderator: "Hold on. Not all unpermitted work is dangerous. The permit process is overly bureaucratic and expensive. This is fear-mongering that vilifies homeowners who were just adapting their spaces to survive a pandemic."

Sarah Li, Real Estate Attorney, Chicago: "The sharpest comment here is David's, and it's precisely why this is so problematic. His blasé attitude exemplifies the root cause. This isn't about vilification; it's about liability, safety, and protecting what is most people's largest financial asset. His 'adaptation' could ruin a family's investment."